Monday, October 26, 2020


Keybot the Quant is long as the new week of trading is set to begin. The bulls are in charge but only with the algo number 4 points above the signal line. Volatility is key and it moves higher this morning favoring bears. VIX is at 30-ish with S&P futures down -31. Bears need the VIX to remain above 27.19 while the bulls will throw confetti and sing happy songs if the VIX drops below 27.19.

Bears need weaker commodities, banks and chips to send stocks lower; GTX below 1730, XLF under 24.61 and SOX below 2250, respectively. If any one of the three turn bearish, and the SPX falls below 3440 trending lower, Keybot will likely flip short. The US dollar index is moving higher weakening commodities so that may be the crack in the foundation. The XLF is down -1.4% in the pre-market but bears need double that loss to create market mayhem.

Keybot prints two pre-scheduled numbers this week one on Tuesday morning the other Friday morning. The EOM is Friday, Halloween is Saturday and November trading begins one week from today on Monday, 11/2/20; the day before the US presidential election on Tuesday, 11/3/20 (the election day always occurs on the first Tuesday after the first Monday in November).

11/1/20; 7:00 PM EST EOM =
10/30/20; 10:00 AM EST =
10/27/20; 10:00 AM EST =
10/25/20; 7:00 PM EST = +59; signal line is +55
10/20/20; 9:00 AM EST = +59; signal line is +55

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